📊 WLK Key Takeaways
Is Westlake Corp. (WLK) a Good Investment?
Westlake Corp exhibits severe financial distress with negative profitability across all metrics, unsustainable free cash flow burn of -$303M annually, and inability to cover interest payments from operations. The combination of declining revenue (-8% YoY), crisis-level gross margins (4.2%), and negative operating cash flow (-$94M) indicates structural challenges in the commodity chemical sector that require urgent operational turnaround.
Why Buy Westlake Corp. Stock? WLK Key Strengths
- Substantial asset base of $19.7B provides strategic options for restructuring or asset sales
- Moderate leverage at 0.65x Debt/Equity ratio preserves some financial flexibility
- Near-term liquidity adequate with Current Ratio of 2.17x despite operational losses
WLK Stock Risks: Westlake Corp. Investment Risks
- Critical cash burn: -$303M free cash flow will deplete $2.3B cash reserves within 7-8 quarters at current rate
- Interest coverage of -2.1x means operating income cannot service debt obligations, creating default risk
- Thin gross margins of 4.2% with widening operating losses (-6.5% margin) indicate uncompetitive cost structure or severe industry pricing pressure
- Revenue decline of 8% YoY combined with deteriorating net income (-2.5% YoY) signals accelerating operational deterioration
Key Metrics to Watch
- Operating cash flow trajectory - must turn positive to validate operational recovery
- Gross margin expansion - currently at unsustainable 4.2%, needs improvement to 8-10% minimum
- Free cash flow and cash runway - critical to assess solvency timeline without restructuring
- Interest coverage ratio - must reach positive territory to eliminate debt service distress
Westlake Corp. (WLK) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.17x current ratio provides a solid financial cushion.
WLK Profit Margin, ROE & Profitability Analysis
WLK vs Materials Sector: How Westlake Corp. Compares
How Westlake Corp. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Westlake Corp. Stock Overvalued? WLK Valuation Analysis 2026
Based on fundamental analysis, Westlake Corp. shows some fundamental concerns relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Westlake Corp. Balance Sheet: WLK Debt, Cash & Liquidity
WLK Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Westlake Corp.'s revenue has shown modest growth of 7% over the 5-year period. The most recent EPS of $3.70 reflects profitable operations.
WLK Revenue Growth, EPS Growth & YoY Performance
WLK Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $2.7B | -$40.0M | $-0.31 |
| Q3 2025 | $2.8B | $108.0M | $0.83 |
| Q2 2025 | $3.0B | -$142.0M | $-1.11 |
| Q1 2025 | $2.8B | -$40.0M | $-0.31 |
| Q3 2024 | $3.1B | $108.0M | $0.83 |
| Q2 2024 | $3.2B | $297.0M | $2.31 |
| Q1 2024 | $3.0B | $174.0M | $1.34 |
| Q3 2023 | $3.1B | $285.0M | $2.20 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Westlake Corp. Dividends, Buybacks & Capital Allocation
WLK SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Westlake Corp. (CIK: 0001262823)
📋 Recent SEC Filings
❓ Frequently Asked Questions about WLK
What is the AI rating for WLK?
Westlake Corp. (WLK) has an AI rating of STRONG SELL with 88% confidence, based on fundamental analysis of SEC EDGAR filings.
What are WLK's key strengths?
Claude: Substantial asset base of $19.7B provides strategic options for restructuring or asset sales. Moderate leverage at 0.65x Debt/Equity ratio preserves some financial flexibility.
What are the risks of investing in WLK?
Claude: Critical cash burn: -$303M free cash flow will deplete $2.3B cash reserves within 7-8 quarters at current rate. Interest coverage of -2.1x means operating income cannot service debt obligations, creating default risk.
What is WLK's revenue and growth?
Westlake Corp. reported revenue of $2.7B.
Does WLK pay dividends?
Westlake Corp. pays dividends, with $68.0M distributed to shareholders in the trailing twelve months.
Where can I find WLK SEC filings?
Official SEC filings for Westlake Corp. (CIK: 0001262823) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is WLK's EPS?
Westlake Corp. has a diluted EPS of $-1.31.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is WLK a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Westlake Corp. has a STRONG SELL rating with 88% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is WLK stock overvalued or undervalued?
Valuation metrics for WLK: ROE of -2.0% (sector avg: 14%), net margin of -6.4% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy WLK stock in 2026?
Our dual AI analysis gives Westlake Corp. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is WLK's free cash flow?
Westlake Corp.'s operating cash flow is $-94.0M, with capital expenditures of $209.0M. FCF margin is -11.4%.
How does WLK compare to other Materials stocks?
Vs Materials sector averages: Net margin -6.4% (avg: 10%), ROE -2.0% (avg: 14%), current ratio 2.17 (avg: 1.6).